When a company purchases shares of its own common stock

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  Merril acquires 100 percent of the outstanding voting shares of Harris company on January 1, 2006. To obtain these shares, Merrill pays $200,000 in cash and issues 10,000 shares of its own $10 par value common stock.

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  On July 1, Perez Corporation purchases 500 shares of its own $5 par value common stock at a cash price of $7 per share. On September 1, it sells 300 shares of the treasury stock for cash at $10 per share.

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  105931 Additional Paid-In Capital Chapman Company purchases 80 percent of the common stock of Russell Company on January 1, 1998, when Russell has the following stockholders' equity accounts: Common stock - 40,000 shares outstanding

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  The balance in treasury stock is a reduction in total equity 10. Palank Company purchased 1,000 shares of its own $5 par value common stock. The market price of the stock was $14 per share.

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  83755 Chapman Company purchases 80 percent of the common stock of Russell Company on January 1, 1998: Additional Paid in Capital Chapman Company purchases 80 percent of the common stock of Russell Company on January 1, 1998 when Russell has the following